Investing.com – The U.S. dollar erased losses against its Canadian counterpart on Thursday, rebounding from a 7-month low, as markets shifted focus to the 2-day Group of 20 world economic summit, which got underway in Seoul.
USD/CAD rebounded from 0.9977 during European afternoon trade, the pair’s lowest since April 26; the pair subsequently consolidated at 1.0025, gaining 0.15%.
The pair was likely to find support at 0.9929, the low of April 21, and resistance at 1.0109, the high of November 4.
On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.
The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.
Speaking at the summit, Canada’s Prime Minister Stephen Harper said, “The government of Canada believes that a smooth-functioning, open-trading global economy requires flexible exchange rates.”
Prime Minister Harper added that, “The problem in my judgment for Canada is not the depreciation of the American dollar, it’s the fact that the Canadian currency is accepting a disproportionate burden of the appreciation because other currencies are not appreciating the way they should”.
The loonie was also up against the euro, with EUR/CAD shedding 0.37% to hit 1.3744.
Meanwhile, Thursday marked a bank holiday in both the U.S. and Canada in observance of Veterans Day and Remembrance Day respectively.
USD/CAD rebounded from 0.9977 during European afternoon trade, the pair’s lowest since April 26; the pair subsequently consolidated at 1.0025, gaining 0.15%.
The pair was likely to find support at 0.9929, the low of April 21, and resistance at 1.0109, the high of November 4.
On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.
The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.
Speaking at the summit, Canada’s Prime Minister Stephen Harper said, “The government of Canada believes that a smooth-functioning, open-trading global economy requires flexible exchange rates.”
Prime Minister Harper added that, “The problem in my judgment for Canada is not the depreciation of the American dollar, it’s the fact that the Canadian currency is accepting a disproportionate burden of the appreciation because other currencies are not appreciating the way they should”.
The loonie was also up against the euro, with EUR/CAD shedding 0.37% to hit 1.3744.
Meanwhile, Thursday marked a bank holiday in both the U.S. and Canada in observance of Veterans Day and Remembrance Day respectively.